ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hester Biosciences's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.83%.
As of today (2026-07-12), Hester Biosciences's WACC % is 14.46%. Hester Biosciences's ROIC % is 8.30% (calculated using TTM income statement data).
Hester Biosciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Hester Biosciences's WACC % is 14.46%. Hester Biosciences's ROIC % is 8.30% (calculated using TTM income statement data).
Hester Biosciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Hester Biosciences ROIC % Related Terms
Hester Biosciences ROIC % Historical Data
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The historical data trend for Hester Biosciences's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Hester Biosciences's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hester Biosciences ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hester Biosciences's ROIC % distribution charts can be found below:
* The bar in red indicates where Hester Biosciences's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hester Biosciences (BOM:524669) has a ROIC % of 11.83% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Hester Biosciences and its competitors.
Is Hester Biosciences' ROIC % too high?
Hester Biosciences' current ROIC % is 11.83%. The Drug Manufacturers industry median ROIC % is 4.49. Hester Biosciences' value of 11.83% is 163.8% above this industry median. Overall, Hester Biosciences has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hester Biosciences' ROIC % compare to ZTS and UTHR?
Hester Biosciences' ROIC % of 11.83% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.49. Hester Biosciences' value of 11.83% is 163.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.49, based on 990 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hester Biosciences's current ROIC % of 11.83% is 163.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Hester Biosciences and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hester Biosciences's current ROIC % is 11.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hester Biosciences stock overvalued right now?
Based on GuruFocus' analysis, Hester Biosciences (BOM:524669) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,889.64, compared to a current price of ₹2,109.40 — trading 11.6% above its estimated fair value. The current ROIC % is 11.83% and 163.8% above the Drug Manufacturers industry median of 4.49. Hester Biosciences' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Hester Biosciences (BOM:524669), the current ROIC % is 11.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hester Biosciences (BOM:524669) Overvalued in 2026?
Based on GuruFocus' analysis, Hester Biosciences stock appears to be overvalued.
The current stock price of ₹2,109.40 is trading 11.6% above its estimated GF Value™ of ₹1,889.64.
GuruFocus considers Hester Biosciences to be Modestly Overvalued.
Key valuation signals for BOM:524669:
ROIC %: 11.83%
GF Value™: ₹1,889.64 vs. price of ₹2,109.40 (11.6% above fair value)
Industry Position: 163.8% above the Drug Manufacturers median
No single metric tells the full story. See the BOM:524669 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hester Biosciences Ltd is an India-based animal healthcare company. It is principally engaged in the manufacturing of veterinary vaccines and trading of veterinary health products such as goat pox vaccine, PPR vaccines, etc. The group has two principal operating and reporting segments, viz. Poultry healthcare and Animal healthcare. Maximum revenue is generated from the Poultry Healthcare segment, which offers various solutions encompassing vaccines, health products, and feed supplements, supported and packaged by its diagnostic services, R&D, quality standards, and field support, to help farmers protect flock health, enhance productivity, and drive long-term farm sustainability. Geographically, it generates maximum revenue within India, and also exports its products to other markets.
79GF Score
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